By Patrick Sheridan
Pennsylvania's Swarthmore Borough Authority is selling approximately $165.2 million in tax-exempt bonds in part to fund renovations at Swarthmore College.
The Series A-1 of 2025 Swarthmore College Revenue Bonds in the amount of about $37.2 million, with maturities ranging from 2026 to 2037, will be offered along with two term bonds, according to the roadshow document accompanying the preliminary official statement.
Series A-2 of 2025 Swarthmore College Revenue Bonds in the amount of approximately $128 million will also be sold with a mandatory tender date of Sept. 13, 2035.
The expected pricing date for the securities is June 3.
Interest on the bonds will be payable on Sept. 15, 2025 and semiannually thereafter on March 15 and Sept. 15.
Principal and interest on the bonds will be payable from, and be secured by, revenues of the Authority from Swarthmore College under a loan agreement between the Authority and the College.
Proceeds will be used for the payment of, or reimbursement to the college for, the repurposing of Swarthmore's Martin Hall to meet the needs of computer science, film, and media studies and information-technology media, and to provide an interdisciplinary technology center. Monies will also be used for utility upgrades and sustainability improvements and other regular ongoing renovation, refurbishment and renewal of campus facilities.
Funds will additionally refund all or a portion of the Authority's Series 2015 Swarthmore College Revenue Bonds.
Swarthmore College is a private liberal-arts college founded in 1864, located 11 miles outside of Philadelphia. It is a residential college with about 1,730 students, including those studying abroad. Six Swarthmore graduates have won the Nobel Prize.
The college's endowment was approximately $2.7 billion as of March 31.
S&P Global Ratings and Moody's Ratings have assigned AAA and Aaa ratings to the bonds, respectively.
Goldman Sachs is the senior manager on the offering.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
May 27, 2025 11:36 ET (15:36 GMT)
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